A Reg T (RT) call is issued When a customer is unable to provide 50% of the purchase price (or short sale) of a security on the trade date.
• Call can be met by deposit of funds or marginable securities or by liquidation of positions.
• Customers have 5 business days to meet a RT call.
• Failure to meet a RT call is subject to liquidation by Lightspeed or its clearing firm.
Call Reason
Call Resolutions and Restrictions
A Day Trading (DT) Call is issued to accounts which exceed their 4 to 1 intra-day buying power.
To qualify for 4 to 1 intrta-day buying power an account must be established as a Pattern Day Trading Account (PDT) and have a minimum equity of $25k at the beginning of each trading session.
• A DT call can be met by depositing new funds into the account.
• A DT call is considered met the day AFTER the funds have been received by our clearing firm.
• New funds must remain in the account for a minimum of 2 business days.
• Accounts with DT Calls are restricted to liquidating transactions only.
Call Reason
Call Resolution and Restrictions
A Regular Maintenance (RM) Call is issued when an account falls below the required percentage levels.
Customers are required to maintain overnight maintenance margin of 25% for long positions and 30% for short positions.
• Customers have 3 business days to meet the call (1 business day if equity falls below 20%).
• An RM call can be met by depositing funds or marginable securities into the account or by the liquidation of positions.
• Accounts failing to meet a RM call are subject to liquidation by Lightspeed or its clearing firm.
• Higher requirements apply to low priced and concentrated positions
Call Reason
Call Resolutions and Restrictions
An Equity Maintenance (EM) Call is issued to Pattern Day Trading Accounts (PDT) that fall below the $25k required minimum.
• EM calls can be met by the deposit of funds or the appreciation of positions in the account.
• Accounts with EM Calls are restricted to liquidating transactions only.
Call Reason
Call Resolutions and Restrictions
A Concentrated Maintenance (CM) Call is issued when the equity maintenance percentage of a concentrated position falls below the required level.
The maintenance requirement on a concentrated position is 40%.
A position is considered concentrated if that position is more than 50% of the total market value of all positions in the account.
• A CM call can be met by depositing funds or marginable securities into the account or by the liquidation of positions.
• Customers have 3 business days to meet a CM call.
• Accounts failing to meet a CM call are subject to liquidation by Lightspeed or its clearing firm.
Positions
Initial Requirement
Regular Maintenance Requirement
Long Marginable
Maximum (50% of stock value)
Maximum (25% of stock value)
Short Marginable
The greater of 50%stock value or the short sale maintenance requirement.
If last sale price/share > or =$5, then the greater of $5 per share or 30% of stock value. If last sale price/share is less than $5, then the greater of $2.50 per share or 100% of stock value).
Non-Marginable Long or Short
100% of stock value
100% of stock value
Reg T According to Regulation T, you may borrow up to 50% of the purchase price of securities that can be purchased on margin. This is known as the initial margin and pertains to securities purchased or sold short and held overnight.
Real time Initial Margin The percentage of the purchase price of securities (that can be purchased on margin) that the investor must pay for with his or her own cash. This applies to positions opened and closed on the same day and not held overnight. Maintenance Margin The minimum amount of equity that must be maintained in a margin account, expressed as a percentage of the position value.
Maintenance Margin The minimum amount of equity that must be maintained in a margin account, expressed as a percentage of the position value.
1. For liquid and listed stock – we will margin securities at or above a price of $3.00 for overnight/maintenance release.
2. The clearing firm will issue a strike for customers who have past due Regulation T calls. On the 3rd strike the account is restricted, and on the 4th strike the account is closed and limited to liquidating trades only (the restrictions/closures are for 90 day periods and limited to 2 strikes within a 1-year time span without penalty). Restrictions – any calls issued during this time frame must be met in 24 hrs. Closures – limit customer to liquidating trades only.
3. The clearing firm will not allow same-day liquidations in accounts which have simultaneous Regulation T and Regular Maintenance calls. These calls must be met on separate days, with any liquidations satisfying the RM call first and the RT call second. Liquidations for both a RT and RM call on the same day will result in the customer’s account incurring a strike.
4. Customers can request to take an earlier strike to use same day liquidations to cover both Regular Maintenance and Regulation T calls.
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Securities executed through an affiliated broker dealer, Lightspeed Trading, LLC. (Member FINRA, SIPC)
